Karur Vysya Bank , a prominent player in the Indian banking sector, has announced its quarterly results and a significant move that will benefit its shareholders.

Q1 Financial Results

Karur Vysya Bank reported its quarterly results for the quarter ended June 30. The bank's net profit rose to Rs. 521.45 crores, compared to Rs. 458.65 crores in the same quarter last year, showing a substantial increase in profitability.

Bonus Share Issue

The bank's Board of Directors has approved a bonus share issue in the ratio of 1:5, meaning shareholders will receive one bonus share for every five shares held. This decision is subject to shareholder approval at the Annual General Meeting (AGM). The record date for bonus share entitlement has been set as August 26.

Key Financial Metrics

Karur Vysya Bank has shown significant improvement in its asset quality:

• Gross NPA ratio improved to 0.66% from 1.32% in the previous year
• Net NPA ratio decreased to 0.19% from 0.38%
• Capital adequacy ratio stood at 17.36%

Implementation of Bonus Issue

The bonus shares will be funded from the Securities Premium Account and are expected to be credited to shareholders within two months of Board approval.

Historical Context

This bonus issue marks Karur Vysya Bank's fourth such offering in its history. Previous bonus issues were as follows:

Market Response

Despite the positive news, the market's immediate reaction was somewhat muted. However, it's worth noting that Karur Vysya Bank's stock has shown strong performance recently:

• 8.00% gain over the past month
• 20.00% increase year-to-date

Looking Ahead

The announcement of the bonus issue, coupled with the improved financial results, is likely to generate renewed interest in Karur Vysya Bank's stock. Investors and stakeholders should keep an eye on further official announcements from the bank regarding the implementation of the bonus issue and future financial performance.

This development underscores Karur Vysya Bank's commitment to rewarding its shareholders while maintaining strong financial health.

Karur Vysya Bank (KVB) is set to potentially reward its shareholders with a bonus share issue for the first time in seven years. The bank's Board of Directors has scheduled a meeting on July 24 to consider this proposal alongside its quarterly financial results.

Bonus Share Issue Consideration

The upcoming board meeting marks a significant event for KVB shareholders, as it could result in the bank's fourth bonus issue since its listing. Previously, the bank has issued bonus shares in:

• 2002 (1:1 ratio)
• 2010 (2:5 ratio)
• 2018 (1:10 ratio)

The exact ratio for the potential new bonus issue and the record date are yet to be announced.

Recent Financial Performance

In the fourth quarter, Karur Vysya Bank demonstrated strong financial performance:

Market Response

The announcement of the potential bonus issue has been well-received by the market. KVB's shares experienced a surge of up to 3%, reaching ₹276.00. As of the latest update, the stock was trading at ₹270.10, representing a 0.71% increase.

Additional Corporate Actions

In a recent development, Karur Vysya Bank has also opened a special window for the re-lodgement of transfer requests for physical shares. This action is in compliance with the SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97 dated July 02, 2025. The bank has published this information in both English (Financial Express) and Tamil (Dinamalar) newspapers on July 20, 2025, demonstrating its commitment to keeping shareholders informed across language barriers.

As investors await the outcome of the July 24 board meeting, the potential bonus issue and the bank's strong financial performance have created a positive sentiment around Karur Vysya Bank's stock.